Creating and Maintaining a Top Ten Poor Quality Supplier Performer List

zagwyn

Involved In Discussions
#1
I am a supplier quality engineer reporting to the process and quality manager (not a sourcing manager). I am tasked with creating and maintaining a ten worse supplier list based on quality received. We do not have incoming inspection but we do have a non conforming form and process in place which identfies the non conformances during manufacturing process. My idea is to use the NCMR process in which MRB will deem whether the defect is the result of a supplier. What I need from the forum is feedback and ideas of what criteria I should put in place to eventually remove the supplier off the list.
Thanks,
Bob Z
 
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Stijloor

Staff member
Super Moderator
#2
Re: Top Ten Poor Quality Performer List

I am a supplier quality engineer reporting to the process and quality manager (not a sourcing manager). I am tasked with creating and maintaining a ten worse supplier list based on quality received. We do not have incoming inspection but we do have a non conforming form and process in place which identfies the non conformances during manufacturing process. My idea is to use the NCMR process in which MRB will deem whether the defect is the result of a supplier. What I need from the forum is feedback and ideas of what criteria I should put in place to eventually remove the supplier off the list.
Thanks,
Bob Z
Hello,

I would start with the evaluation of the Supplier Development Process.
What specific criteria do you use to select, approve and monitor suppliers?
Have you "classified" your suppliers in terms of their impact on your final product quality?
Do you already have supplier performance monitoring data?
Do you have a SCAR (Supplier Corrective Action Request) in place?
I would be careful not to just use Nonconforming Material Report (NCMR) data to evaluate the performance of a supplier. Sometimes poor supplier performance can be caused by poor customer-supplier communication.

Establish a set of objective/measurable criteria such as delivered quality, on-time delivery, responsiveness to SCAR's, competitive pricing, etc.
Collect the data of a reasonable period of time, perform a Pareto Analysis, and then determine your "Worst Ten Suppliers."

Now, after all this, is your intent to help the "worst" ones to get better, or just to eliminate them? Please keep in mind that beating up on suppliers may not be your best strategy. Where I came from we say: "It takes two to tango."

I am sure you'll hear from other Covers as well.

Wishing you the best.

Stijloor.
 

zagwyn

Involved In Discussions
#3
Re: Top Ten Poor Quality Performer List

Hello Stijloor,

The supplier eval is conducted by global sourcing. This includes selection and approval. As for monitoring we use the NCMR process for electrical and mechanical. We also use a first pass yield database for our electrical (PWBA's). I also have a SCAR process which is in place but does need help which I am working on.
I am not sure what you mean as far a classifying their impact. Aside from basic hardware (screws, nuts, etc...) all our parts are an impact to our final product.

Do you already have supplier performance monitoring data?
As stated above FPY, SCAR's and NCMR's. I do not monitor or am I requested to show anything related to on time deliveries or other sourcing activities related to purchasing.


I would be careful not to just use Nonconforming Material Report (NCMR) data to evaluate the performance of a supplier. Sometimes poor supplier performance can be caused by poor customer-supplier communication.
Our suppliers are required to review our official documents and submit first piece qual parts.

My perception of supplier quality is I am in a trusted partner ship with them, they are just an extension of our company. My intention is not elimination but with my large supply base I need to approach the top ten and try to reduce the incoming issues.

Bob Z
 
Last edited by a moderator:

Stijloor

Staff member
Super Moderator
#4
Re: Top Ten Poor Quality Performer List

Hello Stijloor,

The supplier eval is conducted by global sourcing. This includes selection and approval. As for monitoring we use the NCMR process for electrical and mechanical. We also use a first pass yield database for our electrical (PWBA's). I also have a SCAR process which is in place but does need help which I am working on.
I am not sure what you mean as far a classifying their impact. Aside from basic hardware (screws, nuts, etc...) all our parts are an impact to our final product.

[Do you already have supplier performance monitoring data?] As stated above FPY, SCAR's and NCMR's. I do not monitor or am I requested to show anything related to on time deliveries or other sourcing activities related to purchasing.


[I would be careful not to just use Nonconforming Material Report (NCMR) data to evaluate the performance of a supplier. Sometimes poor supplier performance can be caused by poor customer-supplier communication.] Our suppliers are required to review our official documents and submit first piece qual parts.

My perception of supplier quality is I am in a trusted partner ship with them, they are just an extension of our company. My intention is not elimination but with my large supply base I need to approach the top ten and try to reduce the incoming issues.

Bob Z

Hello Bob Z,

Quote: "I am not sure what you mean as far as classifying their impact."

Some of my Clients classify their suppliers into "A", "B" and "C" suppliers.
An "A" supplier has a direct/immediate impact on product quality such as raw material suppiers. A "B" supplier would have an indirect impact such as a maintenance services supplier. A "C" supplier could be one that provides MRO items and other supplies.

The manner in which the suppliers are monitored and feedback provided depends on how they are "classified."

Hope this helps. I'll do some more "digging" for you.

Stijloor.
 

BradM

Staff member
Admin
#5
Re: Creating and Maintaining a Top Ten Poor Quality Performer List

My perception of supplier quality is I am in a trusted partner ship with them, they are just an extension of our company. My intention is not elimination but with my large supply base I need to approach the top ten and try to reduce the incoming issues.

Bob Z
Hello, Bob! I really like your above quote. I too, share that perception.

I guess I am a bit unclear the specific information you are looking for. Are you wanting to develop some cut-off criteria to get rid of suppliers (poor performers), or to strengthen the relationship with your current suppliers?

Do you feel you have too many suppliers? Are you wanting a weighted system for awarding contracts?

There are many approaches you can take, depending on your purpose. Too, how many variables do you want to consider? Like 3-5, or up to 20 factors?
 

zagwyn

Involved In Discussions
#6
Re: Creating and Maintaining a Top Ten Poor Quality Performer List

Hi Brad,
I am glad to see I am not alone. My new manager is looking for me to bull dog the suppliers and I do not want to take the bully role. I would like to work with the supplier in a manner that is respectful yet forceful which over the years has worked well for me. So with that aside I am trying to decide what would be the best way to remove the supplier off the list based on their preformance after I notify them of their status on the list. I will be using qty of NCMR's and qty and responsivness to SCAR's for mechanicals and the same for electrical but will include FPY. Should it be 1 month, 2 months, etc....
 

Wes Bucey

Quite Involved in Discussions
#7
Re: Creating and Maintaining a Top Ten Poor Quality Performer List

Hi Brad,
I am glad to see I am not alone. My new manager is looking for me to bull dog the suppliers and I do not want to take the bully role. I would like to work with the supplier in a manner that is respectful yet forceful which over the years has worked well for me. So with that aside I am trying to decide what would be the best way to remove the supplier off the list based on their preformance after I notify them of their status on the list. I will be using qty of NCMR's and qty and responsivness to SCAR's for mechanicals and the same for electrical but will include FPY. Should it be 1 month, 2 months, etc....
My advice, FWIW is to first separate supplier base into tiers. My reasoning for tiers was
  1. sole source supplier - keep the romance going with lots of personal communication - these are the guys you HAVE to have a true partnership with because replacing them is almost too traumatic to contemplate.
  2. source critical to your own product (usually custom made to your specification, regardless of how many different suppliers) - the most critical part is selection and approval and on-site inspection tour by your organization or a trusted third party agent. These are the folks you want to keep in the loop by telling them the TRUTH about the quantities you will use and what percentage you will purchase from them. These are also the guys you can be firm with when telling them performance on
    (a) quality;
    (b) delivery;
    (c) responsiveness to requests
    are critical to keeping any contracts. Don't hesitate to pull the trigger if you give them fair warning and they still treat you like a redheaded stepchild.
  3. off-the-shelf suppliers of commodities - do a thorough investigation of their reputation and quality BEFORE placing an order for quantity. I often ordered and paid for (in advance) a few samples, ostensibly for prototype purposes, and subjected them to an intense inspection for dimensional and functional characteristics. If I had any hassle about the order or I thought the packaging and handling of my sample order was slap dash or substandard, I didn't bother to discuss the matter with them, I just moved on to the next supplier - in my book, such poor performance brings to mind the adage: "You only get one chance to make a good first impression."
When an organization does not have the facilities to perform a thorough incoming inspection of ordered goods, then it needs to contract with a trusted third party to make spot checks and it is much more important to satisfy yourself the supplier is doing everything right at HIS shop so you can truly have "dock to production line" confidence in the goods you buy from him.
 

Helmut Jilling

Auditor / Consultant
#8
Re: Creating and Maintaining a Top Ten Poor Quality Performer List

Hi Brad,
I am glad to see I am not alone. My new manager is looking for me to bull dog the suppliers and I do not want to take the bully role. I would like to work with the supplier in a manner that is respectful yet forceful which over the years has worked well for me. So with that aside I am trying to decide what would be the best way to remove the supplier off the list based on their preformance after I notify them of their status on the list. I will be using qty of NCMR's and qty and responsivness to SCAR's for mechanicals and the same for electrical but will include FPY. Should it be 1 month, 2 months, etc....

Your approach is far superior. Your manager is wrong.

Toyota and Honda collaborate with their suppliers over problems. GM and Ford bully...you decide which one works better...
 

Mike S.

Happy to be Alive
Trusted Information Resource
#9
Collaboration is great, and preferred. My policy is to always try to help a supplier who has fouled-up. But in the real world, when you're not a major purchaser (say <5% of a supplier's business) sometimes the suppliers DO treat you like crap because they know you can't afford to qualify a new supplier.

I have two suppliers who are sole source, and both were great when they were designed-in. Both are AS9100 certified. But ownership has changed in one case, and in both cases the attitude has changed, and it is like pulling teeth sometimes to work with these guys. More and more I am being convinced that sole sourcing anything is bad business.
 

Helmut Jilling

Auditor / Consultant
#10
Mike S.;198318[QUOTE said:
]....But in the real world, when you're not a major purchaser (say <5% of a supplier's business) sometimes the suppliers DO treat you like crap because they know you can't afford to qualify a new supplier.
It is usually cheaper to qualify a new supplier (long term) than to fight with a supplier who is capable of treating you like crap.

It does not have to be expensive to qualify a new supplier, but it is always expensive to deal with a bad one.


I have two suppliers who are sole source, and both were great when they were designed-in. Both are AS9100 certified. But ownership has changed in one case, and in both cases the attitude has changed, and it is like pulling teeth sometimes to work with these guys. More and more I am being convinced that sole sourcing anything is bad business.
That is why many don't do it. While single sourcing can and often works well, it is only effective when there are clear understandings and clear monitoring of performance.
 
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